The Real Estate Market, Explained in One Graph
According to Zillow, the median price for a house is $200,400, up 7.4% over last year. So, naturally, how big of a house can you afford with a mortgage of $200,400? Our visualization answers this question on a sliding color-coded scale. We broke each state into a grid with 25 boxes, representing 2,500 square feet—that’s a large home with at least 3 bedrooms and 3 bathrooms. Green boxes indicate affordability and orange and red boxes mean it’s expensive. We then graphed how much house you can purchase with exactly $200,400.
The results highlight the enormous differences between housing values in the U.S. It is all about location, location, location. In the Hoosier State, your $200k mortgage can purchase 2,330-sq. ft., but in Washington D.C. only 497 sq. ft. That’s the difference between a large home and a cramped studio apartment.
The fact that Washington D.C. boasts the most expensive housing market in the coutry should come as no surprise to observers of the economy in the aftermath of the recession. While real estate market crashed in other metro areas, it kept rising in Washington D.C. The nation’s capital has actually started to come back down to Earth, but the area is still an outlier. If you can get a high-paying job in the government, chances are that you’ll need to find a roommate to make ends meet.
Except for Ohio, rural states without large cities dominate the list of affordability. The five most affordable states to purchase a home for a mortgage of $200,400:
1. Indiana – 2,330 sq. ft.
2. Arkansas – 2,227 sq. ft.
3. Mississippi – 2,277 sq. ft.
4. West Virginia – 2,252 sq. ft.
5. Ohio – 2,252 sq. ft.
The five most unaffordable states highlight pockets of high economic growth in the U.S. (like Colorado) or a restriction in housing availability (like Hawaii, which is in the middle of the Pacific Ocean!).
1. Washington D.C. – 403 sq. ft.
2. Hawaii – 418 sq. ft.
3. California – 713 sq. ft.
4. Massachusetts – 887 sq. ft.
5. Colorado – 982 sq. ft.
Think about the inequality here: The fourth most unaffordable state in the country (Massachusetts) is still more than twice as affordable as Washington D.C. and Hawaii.
Whether you are buying a home or just renting, chances are you know that the price you pay can vary from neighborhood to neighborhood. If you ever think you are paying too much, just know that someone else in Washington D.C. is paying a heck of lot more for a smaller home.
Data: Table 1.1
About Empire Appraisal Group, Inc.
Empire Appraisal Group, Inc. has been helping people make informed real estate decisions since 2005. They are Broward County’s leading residential appraisal company as a result of their accurate and reliable appraisals, excellent customer service, and quick turn times. When working with an appraiser, integrity and professionalism are essential, and Empire Appraisal Group has a well-established reputation for providing the best appraisal experience. Daniel Lindeman, the Chief Appraiser, is considered one of the top property appraisers in Florida, with nearly 15 years of expertise and 8,000+ appraisals to his credit.
We ‘specialize’ in helping people who need appraisals for estate purposes, divorce, bankruptcy, FSBO’s and more.
We also work closely with realtors to help establish listing prices, these pre-listing appraisals ensures sellers get top dollar for their home.
In addition, to homes of all shapes and sizes, we also appraise condos, multifamily homes, boat docks, land, as well as specialty properties. No job is too big or too small, from manufactured homes to mansions.
Call Empire Appraisal Group directly with any questions concerning your real estate values at 561-441-9298. Also, check out our ‘Reviews’ page and see what others are saying about Daniel Lindeman and Empire Appraisal Group, Inc.
We provide residential appraisal services to all cities in Broward County: Parkland, Coral Springs, Coconut Creek, Dania Beach, Cooper City, Davie, Deerfield Beach, Fort Lauderdale, Sunrise, Hallandale Beach, Hillsboro Beach, Hollywood, Lauderdale by the Sea, Lauderdale Lakes, Lauderhill, Lighthouse Point, Margate, Miramar, North Lauderdale, Oakland Park, Pembroke Pines, Plantation, Pompano Beach, Sea Ranch Lakes, Tamarac, Weston, Wilton Manors.